GOA GOVT SETS UP BLENDED FINANCE FACILITY FOR CLIMATE RESILIENCE

Panaji: February 20, 2024

Chief Minister Dr. Pramod Sawant has stated that Goa is now more confident to achieve its Climate goals after setting up a Blended Finance Facility in the State in partnership with the World Bank.

Chief Minister Dr. Sawant made this statement in the presence of Minister for Environment Shri.Aleixo Sequeira on the occasion of signing of Memorandum of Understanding (MoUs) between Department of Environment and National Bank for Agriculture and Rural Development (NABARD), Small Industries Development Bank of India (SIDBI), and Power Finance Corporation (PFC) wherein the Blended Finance facility is announced at inaugural session of `India Climate and Development Partners’ Meet`, an annual conference of thought leaders and Changemakers in the climate sector, organised by World Bank and State Government held at Panaji today.

This will be first-of-its-kind, climate-focused, multi-sectoral facility at a subnational level that will enable Goa to access and mobilize concessional finance to implement low-carbon and climate-resilient investments. Blended finance- inclusive of public, private, international, and domestic climate finance- has the potential to help Goa and other coastal states in India build greater resilience to the impacts of a rapidly warming climate.
The conference is being held in Panaji from February 19 to 21, 2024.

Chief Minister said, “Resilience is a crucial aspect of our vision for a Santulit (balanced) Goa that bridges economy and ecology and balances our aspirations for the health of our ecosystems and the development and wellbeing of our people. This Blended Finance Facility will enable us to embed and operationalize greater resilience in our planning, investments, and infrastructure. We look forward to empowering our communities with the new technologies and business models that will be crucial in our response to climate change.”
CM said that Goa will become first State to receive funds under Blended Finance Facility from the World Bank.

Minister for Environment Shri. Aleixo Sequeira said that the launch of the Blended Finance Facility has marked a significant chapter in our journey towards sustainable development. It will accelerate our efforts in key areas such as electric mobility, sustainable tourism, waste management, and water conservation.
As Goa advances to implement its State Action Plan on Climate Change (SAPCC 2023-2033), which reflects our commitment to greater resilience and adaptation, thus, adopting a multi-sectored and blended finance approach, will be key to crowding in private capital for large-scale climate smart investments. The partnership of State Government with the World Bank aims to implement a unique sub-national blended finance facility, fostering low-carbon, besides climate-resilient development, he added.

Blended Finance facility will play key roles in assisting projects with existing funding and/or established commercial viability to access financing, and to channelize financing to projects/sectors with no existing funding, below market rate returns, or unattractive risk/return profile. It will serve as a crucial bridge between green financing mechanisms and domestic capital markets, attracting private capital investments for climate action. By integrating carbon markets and harnessing green credits, the programme will ensure its sustainable operation and continuous re-capitalization.

“Blended finance innovations can help mobilise high-risk projects that generate positive, measurable social and environmental results – including better and more sustainable products and services for consumers. We look forward to working with Goa to implement climate-resilient investments towards the well-being of its people and the environment,” said Global Director, Climate Change Global Practice, World Bank Smt. Jennifer Sara.

Chief Secretary, Shri. Puneet Kumar Goel, IAS and Practice Manager, South Asia Region of World Bank Shri.Abhas Jha spoke on the occasion.

Deputy Chairman,NABARD Shri. G.S. Rawat, Chairman & MD of SIDBI Shri.S.Ramann, MD of Power Finance Corporation Smt.Parminder Chopra, Director, Department of Environment & Climate Change Shri. Johnson Fernandes, Member Secretary, Goa State Biodivesity Board Shri. Pradeep Sarmokadam and others were present on the occasion.

Finance Secretary Dr. V.Candavelou, IAS proposed the vote of thanks.

DIP/NB/PN/SF/2024/ 2377